Probe Mines Limited

Probe Mines Limited

June 07, 2012 08:00 ET

Probe Mines Appoints Gordon McCreary to Its Board of Directors and Retains BBA to Commence PEA on Its Borden Lake Gold Project

TORONTO, ONTARIO--(Marketwire - June 7, 2012) - Probe Mines Limited (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce that Mr. Gordon McCreary has been appointed to the Board of Directors of Probe, subject to regulatory approval. Mr. McCreary is a mining engineer with over 40 years of experience focused on the identification and advancement of projects from exploration through to development and production. His knowledge of both project development and the capital markets is a welcome addition to Probe's Board and we are pleased to have him join the Company as it advances the Borden Lake project towards potential development.

Mr. McCreary's skills and experience span a broad spectrum of the mining industry, with the majority of his career spent in the precious metals sector. He was one of the founding officers of Kinross Gold Corporation, and served in the role of Vice President, Corporate Affairs from 1993 to 2004 as the company grew to be a top-ten global gold producer. Prior to this he served as President and CEO of Repadre Capital Corp, a mineral royalty company which eventually merged with IAMGOLD Corporation. In addition to his direct work in the mining industry, Mr. McCreary has also held numerous executive roles in the financial sector, including Vice President of Dundee Bancorp, an Investment Analyst with Corona Gold and a Mining Analyst with the predecessor to UBS Canada. As President and CEO of Baffinland Iron Mines Corporation, he was most recently responsible for the formation and growth of Baffinland and the advancement of its Mary River Project to the cusp of development prior to the company's takeover led by ArcelorMittal in 2011.

Mr. McCreary stated, "As I refocus my career back to the North American precious metals industry, I am thrilled to join the Board of Probe to offer my expertise to assist with the advancement of the Borden Lake Gold Project, an exceptional precious metal discovery that has all the attributes to become a significant gold producer."

As a Director, Mr. McCreary was granted options to acquire 200,000 common shares of Probe at an exercise price of $1.17 per share for a period of five years.

The Board is also pleased to announce that it has retained BBA as its consultant to advance the Borden Lake Project through the Preliminary Economic Assessment ("PEA") process. BBA is a highly respected consulting firm with strong experience in bulk tonnage, open-pit gold deposits and was responsible for Feasibility-stage mine planning and design of Osisko's Canadian Malartic Mine and Detour Gold's Detour Lake Gold Mine, as well as undertaking a management role during construction. BBA has already completed its project review of Borden Lake and has begun work on the PEA. Concurrent with the preparation of the PEA, BBA will also be supervising test work that will be integrated into a Pre-Feasibility Study ("PFS") on the Borden Lake deposit, including advanced metallurgy and geotechnical work. By overlapping the PEA and PFS processes, the Company hopes to reduce the timetable for completion of the studies in order to maintain the aggressive pace it has set. The results of the PEA are expected before the end of 2012, with the PFS following in the first half of 2013. In addition to the PEA and PFS mandate, BBA is also providing Probe with advisory services on the project, including Metallurgical, Geotechnical, Environmental, Permitting and Staffing. This will allow Probe to continue advancing the project towards development while it builds a technical team to carry the project forward.

Dr. David Palmer, President of Probe, states: "We are extremely pleased to have Gordon join the Probe team. His wealth of experience and knowledge in project development and the capital markets will be instrumental to the Company and make him a significant asset to the Company as Borden Lake continues on its path towards a potential development scenario. His addition to the Board comes at a very opportune time as BBA begins its economic and engineering assessment of the project. BBA's experience and reputation as an industry leader in bulk tonnage gold deposits is a perfect fit with Probe and Borden Lake and we appreciate their foresight and guidance throughout this process. We are very much looking forward to having Gordon on the Board and working with BBA, and view these new relationships as a turning point of the Company and the Borden Lake project."

About Borden Lake:

Borden Lake is the Company's flagship gold project located near Chapleau, Ontario. The projects represents a significant new gold discovery in a previously unexplored part of Ontario and is distinguished by: very well-developed infrastructure, being less than one kilometer from a paved highway and the local power grid; a consistent and well-zoned mineralized horizon; and an update NI 43-101Resource Estimate containing the majority of the gold resource in the Indicated Category. The deposit is estimated to contain a Global Resource of 4,051,000 ounces Au averaging 0.71 g/t Au in the Indicated Category and an additional Inferred Resource of 1,796,000 ounces of gold averaging 0.62 g/t gold, at a 0.3 g/t cut-off grade. Borden Lake is also estimated to contain a pit-constrained Indicated Resource of 2,735,000 ounces of gold averaging 1.04 g/t gold and an additional pit-constrained Inferred Resource of 683,000 ounces of gold averaging 0.93 g/t gold, at a 0.6 g/t cut-off grade. Within the pit constrained model, the deposit also hosts a persistent higher-grade core containing an Indicated Resource of 1,497,000 ounces of gold averaging 1.46 g/t gold and an additional Inferred Resource of 290,000 ounces of gold averaging 1.31 g/t gold, at a 1.0 g/t cut-off grade. This higher grade core is expected to play an important role in the economic analyses of the project, which are currently underway.

About BBA:

BBA is a Canadian consulting engineering firm. It offers advanced engineering expertise with a focus on the energy, mining and metals, oil, gas and chemicals sectors. BBA has carved out a niche market in the engineering industry thanks to its unique delivery of integrated services, including consulting services to executives, technical expertise in operations and commissioning. The company is headquartered in Mont-Saint-Hilaire and operates locations in Brossard, Labrador City, Montréal, Québec City, Timmins, Toronto and Vancouver.

About Probe Mines:

Probe Mines Limited is a well financed, Canadian base and precious metal exploration company with approximately $33MM in treasury and a portfolio of highly prospective mineral properties. The Company is actively exploring a significant new gold resource on its Borden Lake project near Chapleau, Ontario and owns 875 claims covering approximately 14,000 hectares in the McFauld's Lake area, including a 100% interest in the Black Creek chromite deposit. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, where production was suspended in October 2011, and a 45% interest in a joint venture property with Lake Shore Gold Corp, which surrounds Lake Shore's Timmins Mine project. The Company's shares trade on the TSX Venture Exchange under the symbol PRB.

David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited, visit our website at

Forward-Looking Statements

This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Shares Issued: 65,021,533

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Probe Mines Limited
    David Palmer
    (416) 777-6703

    Probe Mines Limited
    Karen Willoughby
    Investor Relations
    (866) 936-6766